Delek Logistics Lifts 2026 EBITDA Floor After Libby Completion

The Tip Desk · November 6, 2026 · 3 min read

The partnership raised full-year adjusted EBITDA guidance to $530 million–$560 million after finishing the Libby sour-gas system and posting $142.9 million of third-quarter adjusted EBITDA.

Delek Logistics Partners, LP (DKL) raised the floor of its 2026 adjusted EBITDA outlook to $530 million from $520 million after completing the integrated sour gas processing, treating, and handling solution at the Libby complex and achieving first acid gas injection during the quarter.

The Brentwood, Tennessee midstream master limited partnership said the new range of $530 million to $560 million reflects strong year-to-date operational performance and includes about $15 million of contribution from 2026 organic growth projects. It said it is on track to deliver an incremental $60 million of adjusted EBITDA in 2027 from the 2026 growth capital program.

Adjusted EBITDA was $142.9 million in the third quarter 2026, essentially unchanged from $143.5 million in the second quarter after a sequential increase from $132.3 million in the first quarter. Net income was $47.4 million, or $0.85 a share, compared with $28.9 million, or $0.54 a share, in the second quarter. EBITDA was $118.5 million. The company said the year-over-year EBITDA increase was primarily driven by increased margins in the gathering and processing business. Third-quarter EBITDA included $24.6 million of sales-type lease accounting impacts.

Gathering and Processing adjusted EBITDA was $88.4 million, which the company attributed primarily to increased margins. Wholesale Marketing and Terminalling adjusted EBITDA was $20.9 million, which the company attributed to termination of the East Texas marketing agreement with Delek US Holdings and a decrease in wholesale margins. Storage and Transportation adjusted EBITDA was $19.8 million, attributed to increased volume and margins in trucking. Investments in Pipeline Joint Ventures contributed $26.5 million of adjusted EBITDA from equity method investments, attributed to lower income from Red River and other joint ventures, partially offset by higher W2W income. Corporate adjusted EBITDA was a loss of $12.7 million.

Net revenues were $372.4 million, with affiliate revenue of $184.2 million and third-party revenue of $188.2 million. East Texas Tyler refinery sales volumes were zero after the East Texas marketing agreement was terminated on January 1, 2026. West Texas marketing throughputs were 3,117 bpd with a $9.99 per barrel gross margin. Natural gas gathering and processing volumes were 93,777 Mcfd. Midland Gathering System crude volumes were 205,606 bpd and Plains Connection System volumes were 160,339 bpd. Midland Water Gathering System water disposal and recycling volumes were 512,436 bpd. Terminalling throughputs were 158,907 bpd.

On August 14, 2026, Delek Logistics completed an underwritten offering of 4,600,000 common units at $50 per unit and used net proceeds to repay outstanding borrowings under its revolving facility. As of September 30, 2026, total debt was approximately $2.1 billion, cash was $49.0 million, and the leverage ratio was approximately 3.85x, compared with about 4.23x as of June 30, 2026. The company said it has full access to and no borrowings from the $1.3 billion third-party revolving credit facility.

Net cash provided by operating activities was $187.9 million. Distributable cash flow, as adjusted, was $73.1 million. The distributable cash flow coverage ratio, as adjusted, was 1.11x. On October 23, 2026, the partnership declared a quarterly cash distribution of $1.140 per common limited partner unit, the 55th consecutive quarterly increase, to be paid November 10, 2026.

President Avigal Soreq said the company is in the process of commissioning the Libby facilities and that, with growing demand for sour gas treating and acid gas injection capabilities, DKL is increasingly positioned as a differentiated Delaware Basin midstream platform. He said the company remains focused on executing growth opportunities and continuing its economic separation and deconsolidation path from its sponsor. Total capital spending was $54.6 million, including $47.7 million of growth capital spending.